Working Papers

The Impacts of the Supporting-Firm Base in Markets with Network Effects

Qi Wang and Jinhong Xie

Jan 1, 2010

Examines how the number of firms supporting a given technology affects consumers’ product evaluation in the presence of network effects and standards competition; tests theory via analysis of history of 3.5-inch floppy disk drives’ success in the market from 1983 to 1998.

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